The National Transport and Safety Authority (NTSA) has announced a sweeping freeze on the licensing of new public transport operators, effectively shutting the door on new matatu Saccos and transport companies for the next two years as it seeks to overhaul the sector.
In a public notice issued on Friday, June 19, the authority declared a temporary moratorium on the licensing of new Public Service Vehicle (PSV) operators for 24 months, citing growing road safety concerns, rampant non-compliance, and the rise of illegal operators.
The move is expected to have far-reaching implications for investors seeking to enter Kenya's lucrative public transport industry, as well as existing operators hoping to expand their networks.
Simply put, potential drivers and PSV fare conductors (commonly known as makangas) seeking entry into the industry through new operators will be barred from doing so.
Beyond the two-year freeze on new operators, NTSA has also suspended the approval of new routes and route extensions for 12 months.
An example of this is if a PSV operator like Super Metro or Metro Trans intends to introduce a new route, such as Nairobi CBD-Thika-Kenol, it will have to wait for the expiry of the one-year period or until the moratorium is lifted or reviewed by the NTSA.
The authority further barred the modification or reconfiguration of existing licensed routes, including changes to passenger pick-up and drop-off points, for the same period, that is, matatu saccos cannot, for instance change their passenger pick-up and drop-off point from Kimbo to somewhere else along Thika Road.
According to NTSA, the drastic measures are aimed at restoring order in a sector that has increasingly come under scrutiny over safety violations and operational challenges.
"The licensing of new public transport operators (Saccos and Companies) for a period of 24 months," the notice stated, outlining one of the key restrictions.
The authority said the decision was driven by "persistent non-compliance and road safety concerns within the sector" as well as the growing number of illegal operators who continue to undermine regulated players.
NTSA warned that unlicensed operators have contributed to significant road safety risks, heightened insecurity, and unfair competition against licensed transport providers.
The authority also pointed to what it described as inconsistencies arising from frequent route modifications, arguing that the changes have contributed to unreliable public transport services across the country.
The moratorium forms part of a broader reform agenda aimed at tightening oversight and strengthening transport management systems.
During the suspension period, NTSA said it will undertake a comprehensive audit of road safety compliance and traffic management in consultation with stakeholders and county governments.
The authority added that it would work closely with existing operators to improve service standards and ensure full compliance with safety requirements.
At the same time, county governments will be engaged in efforts to redefine routes to make them more consistent and commercially viable.
The directive means that no new applications for PSV operator licences will be accepted or processed during the moratorium period. However, existing licensed operators will continue operating, provided they comply fully with safety, licensing, and operational standards.
NTSA also encouraged prospective investors and transport operators to use the period to submit proposals and memorandums aimed at improving road safety and enhancing the management of public transport in Kenya.
The moratorium took effect on June 19, 2026.
The announcement is likely to spark debate within the transport industry, particularly among entrepreneurs seeking entry into the sector and operators hoping to expand into new routes.
It also signals the government's intention to tighten control over the matatu industry as it pushes for safer and more reliable public transport services nationwide.
